1.Instrument Issuance: 1.1 The issuer of corporate debt securities has to get an approval from the SEC except corporate debt securities issued by financial institutions. The issuer in the latter case only reports the result of offering to the BOT 1.2 The Issuer has to assign the guarantor, the registrar and the bondholders’ representative. 1.3 The SEC applies for ISIN Code to the TSD. 1.4 The issuer registers corporate debt securities with the ThaiBMA.
2.Offering in the Primary Market : 2.1 Offering corporate debt securities can be done in 2 ways as follows;
- Private Placement Offering (PP) – the issuer may sell the corporate debt securities by itself.
- Public Offering (PO) – offering the securities to the public must be done by guarantors.
2.2 The issuer reports the result of corporate debt securities offering to the SEC.
2.3 Investors transfer the money through bank accounts for clearing and deposit the securities at the TSD or custodians. In case of depositing the securities at custodians, the custodian will deposit the securities to the TSD consequently (at a later stage).
3. Trading in the Secondary Market: 3.1 The issuer registers corporate debt securities with the BEX 3.2 There are two trading options the secondary market. - Trading in the exchange market – the BEX - Trading in the over –the – counter (OTC) market
3.3 Dealers reports the result of trading corporate debt securities to the ThaiBMA
3.4 The clearing and settlement process can be done through the TCH.
3.5 In case of changing any term after offering/trading, the issuer must report the amendment of rights, duties, liabilities or guarantees to the SEC and the ThaiBMA and that amendment must consistent with provisions and terms of rights and duties.
4.Interest Payment:
4.1 The registrar as the representative of issuers pays interest to holders. The payment shall be in line with the issuers’ declaration.
5.Maturity of Instrument: 5.1 Payment of the principal for redemption to debt securities holders shall be done by the registrar at the maturity time.